Money market assets have reached a record $2.65 trillion in the United States according to a recent Bloomberg article. Clearly attributable to remarkably pessimistic sentiment amongst nearly all market participants, investors are looking for shelter and safety in this incredibly volatile market.

The article goes on to cover the higher-risk 'money market' funds of today that are involved in much riskier asset classes such as subprime credit. This is a topic that my colleague Peter Cohan discussed yesterday and its an important concept to remember -- not all money market funds are created equal.

Every day new pieces of news hit the wires to confirm the 'we are scared' thesis. The volatility index (VIX) is at all-time highs, investors are pulling their money from the stock market and moving into money market funds, the markets are giving back much of their early year gains.

Before you take all of your money out of the market make sure you understand why you're panicking. Are you afraid that your holdings have exposure to a weakening credit market and tough borrowing environment? Are your holdings pricing in a rebound in housing to occur shortly? Then it makes sense to sell. But if you own long-term investments in stocks that you consider to be attractively priced don't let the panic overtake you.